The accounting profession, long known for its focus on accuracy and compliance, now faces a crucial balancing act: fostering diversity, equity, and inclusion (DE&I) within its ranks. While numbers are the heart of accounting, a homogenous workforce limits perspective and innovation.
Building a long-term DE&I strategy isn’t just about checking off the box on corporate social responsibility; it’s about strengthening the profession for the future.
Here, we explore the specific challenges and opportunities in crafting a successful DE&I plan in accounting.
Understanding the Landscape: A Profession Out of Balance
Despite progress, the accounting profession continues to struggle with diversity. The Institute of Management Accountants’ Diversifying Global Accounting Talent: Actionable Solutions for Progress report shows that the profession is perceived as not diverse enough. Minoritized communities, particularly Black and Hispanic/Latinx individuals, are significantly underrepresented in the profession. This lack of diversity creates a talent pipeline issue and limits the profession's ability to reflect the clients it serves.
But the challenges go beyond race. Gender pay gaps and inequitable treatment persist, hindering women's advancement. The culture of long hours and demanding schedules can disproportionately impact women and other marginalized groups juggling work-life balance. Unconscious bias can also play a role, limiting promotion opportunities for qualified individuals from diverse backgrounds.
Building a Strong Foundation: Tailoring DE&I for Accounting
The core principles of a long-term DE&I strategy remain the same for any industry. However, certain aspects require specific tailoring for the accounting profession. Here’s how to build a solid foundation for DE&I in your accounting firm:
- Data-driven approach: Go beyond self-reported demographics. Analyze hiring, promotion, and retention data by race, gender, and other factors. Identify areas where disparities exist and use this data to guide your strategy.
- Building inclusive teams: Promote diversity at all levels, from entry-level staff to leadership teams. Consider unconscious bias training for partners and senior managers to ensure fair hiring and promotion practices.
- Mentorship and sponsorship: Create formal mentorship programs that pair individuals from diverse backgrounds with established professionals. Mentorship can provide guidance, support, and career development opportunities. Sponsorship, where senior leaders advocate for protégés’ advancement, is critical for breaking down barriers.
Cultivating a Culture of Belonging: Beyond Numbers
A successful DE&I strategy goes beyond just filling quotas. It’s about creating a culture where everyone feels valued, respected, and empowered to contribute their best. Here are some key aspects to consider for accounting firms:
- Flexible work arrangements: Recognize that one-size-fills-all work models do not cater to diverse needs. Explore flexible schedules, remote work options, and part-time arrangements. This can improve employee satisfaction and retention, particularly for parents returning from parental leave or juggling family commitments.
- Work-life balance: The accounting profession is known for its demanding schedules. However, promoting work-life balance is crucial for attracting and retaining diverse talent. Offer generous parental leave policies, childcare support options, and discourage excessive overtime.
- Employee resource groups (ERGs): Encourage the formation of ERGs specifically for women, minorities, or LGBTQ+ individuals in accounting. These groups provide a sense of community, professional development opportunities, and a platform for raising concerns.
Leveraging Technology for DE&I
Technology can be a powerful tool for advancing DE&I in accounting. Here’s how:
- Automated blind hiring: Use AI-powered tools to anonymize resumes during the initial screening process. This can help mitigate unconscious bias during candidate selection.
- Mentorship platforms: Explore online mentorship platforms that connect individuals from diverse backgrounds with experienced professionals across different firms.
- Flexible learning opportunities: Offer online training modules and resources on unconscious bias, cultural competency, and microaggressions. A great resource is IMA’s Diversity, Equity & Inclusion Practices Certificate™. This allows employees to learn at their own pace at times convenient to them.
Measuring Progress and Continuous Improvement
Building a long-term DE&I strategy requires ongoing monitoring and adaptation. Regularly track your progress toward your goals. This might include key performance indicators (KPIs) such as diversity in new hires, promotion rates for underrepresented groups, and employee engagement surveys. Analyze the data and identify areas for improvement.
Partnerships and Industry-Wide Initiatives
The accounting profession can benefit from collaboration. Partner with universities and colleges with strong diversity programs to attract talent from underrepresented groups. Support organizations such as the IMA (Institute of Management Accountants) that are focused on advancing marginalized groups, including women in accounting.
The Future of Accounting: A Brighter Balance Sheet
By embracing DE&I, the accounting profession can create a more vibrant and successful future. A diverse workforce brings a wider range of perspectives and experiences to the table, fostering innovation and better clients.
